TOWN OF OCEAN CITY

FISCAL YEAR 2022 ADOPTED BUDGET

SERVICE CENTER FUND AND IMPOUND LOT

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BUDGET HIGHLIGHTS:

 

REVENUE:

Fuel revenue is dependent on fuel cost, and the Energy Administration has projected that both gasoline and diesel fuel rates will decrease from the rates budgeted in FY 21. Gallons of both types of fuel are anticipated to remain level in FY 22. Overall fuel revenue is anticipated to decrease $169,995. Parts revenue is projected to remain level for FY 22. Labor rates for light equipment are set at $67 per hour and labor rates for heavy equipment are currently $86 per hour. It has not been necessary to increase labor rates for several years. Vehicle labor revenue has been budgeted to increase for FY 22.

 

PERSONNEL CHANGES:

Nineteen full-time employees are funded in the Service Center budget and there are two full- time positions in the Impound Lot. A step increase effective on January 1, 2022 has been included. Salary savings result from the retirement of long-term employees. Wages for a seasonal warehouse employee were deleted in FY 22, but funding has been continued for a seasonal vehicle technician. In the Impound Lot division, funding remains at $16,650 for seasonal employees. Allocations for retiree health and retirement increase for this division, while the allocations for unemployment and worker’s compensation decrease. A tool allowance of $500 per mechanic has been included in the Service Center budget.

 

CHANGES IN OPERATIONS:

Contracted Services expenses are expected to decrease slightly. This category includes building and equipment maintenance, training and travel, printing costs and tipping fees, as well as other contracted services. Training includes attendance at the National Procurement Institute conference for one employee, online training for Purchasing staff, and automotive training for the mechanics. Building and equipment maintenance costs are projected to decrease $2,630. Tipping fees for tire disposal have been included at $2,000. Supplies and Materials decrease $10,000. The FY20 budget included the purchase of a truck tire changer and five hose reels for the fleet garage at a total cost of $28,110. In FY 22, a passenger vehicle tire changer and five hose reels have been included at $18,110. Purchases of fuel and inventory are the major expenses in this department. Vehicle fuel is purchased by this department and charged to all other City departments as it is consumed. This expense is reflected in the vehicle fuel line item in all City departments and is a notable cost for Transportation, Solid Waste and Police. Vehicle fuel costs are expected to decrease in FY 22, leading to a reduction in the estimate of fuel purchases of $143,901. Estimates of inventory for parts and supplies has been budgeted to increase $2,802 for FY 22. Energy costs for this department are anticipated to remain level. Intragovernmental allocations for IT Services, general overhead, radio and insurance increase for this division, while the allocations for vehicle lease decrease. Two replacement vehicles were included in Vehicle Trust: a tow truck and a pickup truck.